HSBC launches direct only 2.99% fixed rate

HSBC has launched a two- year fixed rate mortgage at 2.99%, as it reveals its mortgage application requests doubled in February compared with January 2009.

The bank is also offering two new longer term fixed mortgages, a five-year deal at 3.99% and a ten- year loan at 4.98%.

Martijn van der Heijden, head of mortgages at HSBC, says: “The clear feedback we have received from customers is that they now want to lock into today’s historically low interest rates.

“Base rates don’t have much further to fall, so demand for longer term fixed rate mortgages is increasing. Anyone looking to take out our ultra low 2.99% two year fixed rate needs to move quickly as it is only guaranteed to the end of the month.”